South Korea to back construction of 140 LNG-powered ships

The South Korean government said on Thursday it will support the orders of 140 LNG-powered vessels as part of a package of measures to help small and midsized shipbuilders.

While measures in April were aimed to help large shipbuilders such as DSME, HHI and SHI, the latest scheme is geared more toward small and midsized builders.

The government will provide shipbuilders and suppliers with 700 billion won ($620.2m) in new financing and maturing loans and debt guarantees worth 1 trillion won ($886m), according to a statement by South Korea’s Ministry of Trade, Industry and Energy.

The measures call for the government and private companies to place orders for the LNG-powered vessels by 2025.

The government and the private sector also plan to invest 2.8 trillion won by 2025 to build infrastructure for LNG bunkering, the statement said.

To remind, South Korean LNG importing giant Kogas said recently it plans to invest 1 trillion won ($890 million) by 2025 in LNG and hydrogen fueling projects.

According to Kogas, domestic LNG bunkering demand is expected to rise from 310,000 tons in 2022 to 1.36 million tons in 2030 under stricter environmental regulations.